Uranium In Favour With The Japanese

February 11, 2009 | By | Reply More

It has been some time since there has been any positive news that has given encouragement to investors in Uranium and its miners.

With the spot price dropping like a stone in the last eighteen months before stagnating around $47-$50 a lb.the news that a Japanese industrial & financial corporation has paid a 14% premium over the current share price for a near 20% stake in Uranium One Inc.may herald long overdue renewed activity in the nuclear sector.

Uranium One Inc is a leading miner of uranium Ux308 carrying out its operations in South Africa, Kazakhstan and the United States.

A spokesman for the Toronto based miner said that the company will benefit from the consortiums knowledge and expertise in the nuclear industry, its financial resources and high level relationships in Kazakhstan.

In the last year Uranium One Inc. share price has dropped from $7.00 to as low as 60 cents before Mondays closing price of $2.00.

The company has a  sound balance sheet, $185 million in cash which will be boosted by the share sale allowing ample latitude for investment in growth and development.

Our hope is that this news will reinforce the hope expressed by a spokesman at the Cape Town mining conference that investor interest in the long overlooked nuclear sector will be reawakened.

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Category: Uranium

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